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New 65-plate sees car sales hit all-time high
New car registrations in the UK have hit an all-time high. Growth in new car sales continues as consumers feel the effects of economic recovery. Registrations for 2015 have already topped the 2 million mark, the first time this has been achieved as early as September since 2004.
In total, the number of cars registered in 2015 so far is 2,096,886 – 7.1% higher than the same point last year. Our last blog reported on the continued rise in new car sales and this trend looks set to continue. This is now the 43rd consecutive month of growth, as 462,517 cars were registered in the plate change month.
The SMMT view
The figures come from the Society of Motor Manufacturers and Traders (SMMT), which reported gains across all market sectors – including private, fleet and business. Petrol, diesel and alternatively-fuelled vehicles all saw increased demand.
Mike Hawes, SMMT chief executive, said: “September is traditionally one of the year’s biggest months for new car registrations – and last month set an autumn record. With plenty of attractive, affordable deals available on the new 65-plate, Britain’s car buyers were busier than ever. The market reached pre-recession levels some time ago.”
It is expected that car sales will level off over the coming months but demand continues to be strong for the time being. Despite the Volkswagen emissions scandal, the German car manufacturer’s market share was up 3.73%, while Audi and Skoda rose 11.36% and 3.58% respectively.
For a more detailed breakdown of figures, visit the SMMT website.
Dealerships’ time to shine
Obviously, the increase in new car sales is great news for dealerships. Dealers should be taking advantage of the return to pre-recession registrations and ensure they are maximising every opportunity. Alongside the increase in new vehicle sales, they should also be able to provide more financial aftercare products, to ensure customers keep their vehicles safe and to maximise revenue.
Protecting customers with GAP insurance is one example. A new or used car represents a large financial investment for most customers, so helping buyers to protect that investment against the effects of a total loss motor insurance claim, theft or fire is the perfect next step for dealers. With attractive, affordable finance deals helping to fuel the rise in new car sales, GAP can be a valuable tool in helping customers make sure they’re not penalised if the worst should happen.
For example, as the vast majority of new cars are sold on a personal contract purchase (PCP) or personal lease, GAP is a great product to protect that payment. If a customer takes out a PCP and the car is written off within the payment period, the customer still owes the finance on the car. GAP can help protect them against the need to pay the finance charges when the car is no longer on the road.
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